The Department of Health and Human Services’ Office of Inspector General today issued a report identifying vulnerabilities in the hospital wage index system for Medicare payments. “As a result of these vulnerabilities, wage indexes may not always accurately reflect local labor prices and, therefore, Medicare payments to hospitals and other providers may not be appropriately adjusted to reflect local labor prices,” the report says. The Centers for Medicare & Medicaid Services uses area wage indexes to adjust hospital payments annually to reflect local labor prices. CMS calculates each area’s wage index based on wage data submitted by acute care hospitals in their Medicare cost reports. OIG issued a number of recommendations for addressing the vulnerabilities.

Related News Articles

Headline
A Senate Judiciary Committee report released Jan. 12 found that UnitedHealth Group used “aggressive strategies” to maximize its Medicare Advantage risk-…
Headline
The Centers for Medicare & Medicaid Services has released a request for information seeking input on replacing its Medicare claims processing system with a…
Headline
The AHA Jan. 9 urged the Medicare Payment Advisory Commission to consider, during its next meeting Jan. 15-16, higher payment updates for the…
Headline
The application period has opened for hospitals to apply for the latest allocation of Medicare-funded graduate medical education residency slots under Section…
Headline
The Centers for Medicare & Medicaid Services has implemented an online form for providers to submit complaints regarding Medicare Advantage plans. A CMS…
Headline
The Centers for Medicare & Medicaid Services released a memo Dec. 16 announcing the agency’s intent to conduct a voluntary pilot in 2026, called the…